OMG I m so happy you finally got it. This is what I was trying to bring to attention from page 1 !!
India's rise in income is not really translating into a corresponding increase in the quality of living.
Now, the ultimate aim of an increase in GDP is to increase the standard of living of its people. If GDP increase doesnt translate into a corresponding increase in HDI, then what is the significance of the GDP figures?
Now, if Kerala with a lower PCI is able to manage achieving a much higher HDI, then why is it that the other states aren't able to do. There must be something different going on in Kerala (not foreign remittance).
My bad, I should have made the title Kerala's Social Welfare Model: Probably the right way forward
എടാ മോനെ നിനക്ക് പാണ്ടികളെ വേരുപ്പാണല്ലെ
Oh dear,
Probably you should look at various well established models of developing a reigon
1.Rostow's stages of Growth
The Rostow's Stages of Growth model (also called "Rostovian take-off model") is one of the major historical models of economic growth. It was developed by W. W. Rostow. The model postulates that economic growth occurs in five basic stages, of varying length:[1]
1. Traditional society
2. Preconditions for take-off
3. Take-off
4. Drive to maturity
5. Age of High mass consumption
Rostow's model is one of the more structuralist models of economic growth, particularly in comparison with the 'backwardness' model developed by Alexander Gerschenkron, although the two models are not mutually exclusive.
Rostow argued that economic take-off must initially be led by a few individual sectors. This belief echoes David Ricardo’s comparative advantage thesis and criticizes Marxist revolutionaries push for economic self-reliance in that it pushes for the 'initial' development of only one or two sectors over the development of all sectors equally. This became one of the important concepts in the theory of modernization in the social evolutionism.
The whole model is too big and would tantamount to spamming if posted completely,i would be posting only relevant material.
Rostow's stages of growth - Wikipedia, the free encyclopedia
1.Traditional society
characterized by subsistence agriculture or hunting & gathering; almost wholly a "primary" sector economy
limited technology;
A static or 'rigid' society: lack of class or individual economic mobility, with stability prioritized and change seen negatively
2.Pre-conditions to “take-off”
external demand for raw materials initiates economic change;
development of more productive, commercial agriculture & cash crops not consumed by producers and/or largely exported
widespread and enhanced investment in changes to the physical environment to expand production (i.e. irrigation, canals, ports)
increasing spread of technology & advances in existing technologies
changing social structure, with previous social equilibrium now in flux
individual social mobility begins
development of national identity and shared economic interests
3.Take off
manufacturing begins to rationalize and scale increases in a few leading industries, as goods are made both for export and domestic consumption
the "secondary" (goods-producing) sector expands and ratio of secondary vs. primary sectors in the economy shifts quickly towards secondary
textiles & apparel are usually the first "take-off" industry, as happened in Great Britain's classic "Industrial Revolution"
4.Drive to maturity
diversification of the industrial base; multiple industries expand & new ones take root quickly
manufacturing shifts from investment-driven (capital goods) towards consumer durables & domestic consumption
rapid development of transportation infrastructure
large-scale investment in social infrastructure (schools, universities, hospitals, etc.)
4.Age of mass consumption
the industrial base dominates the economy; the primary sector is of greatly diminished weight in economy & society
widespread and normative consumption of high-value consumer goods (e.g. automobiles)
consumers typically (if not universally), have disposable income, beyond all basic needs, for additional goods
and regarding its relation with inequality
1.Traditional society
Inequalities is low as every one is equally poor.
2.Pre condition for take off
Inequality increases
3.Take off
Inequality Increases
4.Drive to maturity
Inequality declines
5.High mass consumption
Inequality declines
Now another set of even valid theories
Growth Center and Growth Pole
Theoretical prespective developed by francis perroux ,Spatial prespective by Boudeville and hirschmann.
I have very good notes on this theory but it would take a whole day to copy and i have not yet found a consolidated link for this theory.I am typing only salient features.Sorry if the seem disjointed.In short the stages of growth are
1.Schumpeter: Growth in discontinous spurts and is uneven,due to innovative enterpenures who establish large scale firms called dynamic propulsive firms having following characterstics
a. Firms in good and commodities with high elasticity of demand
b. Economies of scale
c. Modern technology
d. Advanced Mgmt
e. Strong Backward and forward linkage
2.Perroux: Centipetal and Centrifugal force wrt market and interdependence
a.With increasing demand produce of large scale firm is increased
b. Increase production further bring down cost of production
c. To meet growing demand of raw material investment in backward linkages financed by high profits generated
d. To market produce,investment in forward linkages.
e. To develop market development of communication linkages.
3. Boudeville: Economic growth is affected by three factors
a.Economies internal to firm
b.Economies external to firm but internal to industries
c.Economies external to industry but internal to Urban system
4.Hirschman: Polarisation and trickel down effect
P.S. search for each term independently. I have provided the keywords.
and a toned down version of Growth pole and Growth centre theories are
Cumulative Causation theory
Core periphery models
Again a shitty link but at least something is good than nothing
http://www.soec.nagoya-u.ac.jp/erc/DP/paper147.pdf
Core-periphery - Wikipedia, the free encyclopedia
Core-periphery theory is based on the notion that as one region or state expands in economic prosperity, it must engulf regions nearby to ensure ongoing economic and political success. The area of high growth or former high growth becomes known as the core, and the neighboring area is the periphery. Cores and peripheries can be towns, cities, states, or nations.
Core expansion trends and methods
On a simplified scale, when a city grows in popularity, it must expand its borders to continue to supply the population with the standard of living they are used to (eg variety of products, standard of living, etc). Traditionally, the inner city core will first expand to areas of geographic similarity; for instance, a neighboring town may find itself becoming a suburb of the city.
When geographic peripheries become exhausted (either because resources have dried up or the economies of scale have balanced out), the core then seeks out peripheries that are culturally similar and share the same language as the core. Only when the core has exhausted all advantageous options of geographic and cultural similarity will it seek to expand to a periphery that is truly foreign. This is because a foreign periphery carries a high risk of not complying with requests from the core.
An example of traditional core-periphery theory exhausting regional options and adopting an international scale can be found in the European colonization of Africa. Core nations, such as England, Germany and France, sought to extract resources in the face of cultural disparity. Because these cultural differences were perceived as vast, military presence was necessary to ensure the expansion of these cores into Africa.
Whereas peripheries bearing geographic or cultural similarity to the core can often benefit in the long run, through what is known as trickle-down economics, peripheries that have vast cultural differences often lack negotiation rights in their colonisation. When this happens, trickle-up economics apply, and peripheries watch as their resources drain away towards the core. The more a periphery becomes colonised, the less it is able to resist the core. The probability of civil or transnational war then starts to slowly approach 1 (certainty).
Semi-periphery
Many experts contest that the core-periphery system is far too simple and hold that there is an additional aspect to society that has been markedly left out. They maintain that the semi-periphery is also an important middle ground between the core and the periphery. This is an area that is more self sufficient and developed than the periphery, but not to the extent of the core. Immanuel Wallerstein argues that the semi-periphery is important because it bridges the gap between the rich core countries and the poor periphery countries. It provides balance and order keeping the world from political and economic crisis in same way that the middle class does on the national level in stable core countries.
Now few counter-assertions regarding your assertions regarding why commie model is superior
1.Inequality in kerala is low
That is again because of remmitances.If you would have developed in classical way by building up your industrial capacity,it would have resulted in agglomeration and formation of growth pole.There is no other way of developing.Even command and control economies are based of agglomeration.If they are not ,they end up like iron spigots at the time of mao during cultural revolution.
Since a large percentage of Malayalis migrate and they do it from all parts of Kerala,their Income gets distributed leading to less Inequality.States which are developing on basis of Industrialisation have agglomeration of Industry and capital thus producing inequalities.
This also explains lack of big cities in Kerala (as Per your definition).And also the facts why Industrialising states have high level of Inequality.They are in initial take-off stages.Initially inequality is bound to increase.
And in which way is growth is not translating into quality of living for India.If you make an assertion you should back it up with data.This no improvement in quality is a usual communist rant even when statistics are antiteth to their assertions.Every respectable survey of poverty has shown that there has been a sharp decline in number of poors measured using any method.
Statistics on Poverty in India | P.a.p.-Blog, Human Rights Etc.
2.GDP does not matter HDI does
No mister it is GDP only thing that does matter.Without GDP you will never be able to afford good education,Good health care and all sundry things.The High HDI that kerala has had been made possible due to remmitances of expatriates.It is disposable income which need not be reinvested for its continuation.
3.The model could be applied to a larger geographical area or population
Where will 1.2 Billion people migrate to.Should they migrate to china or africa.
4.There is no Industrial development because it would harm enviorment
This is a bullshit argument.You do not need swathes of land to establish Industries.This is pure propaganda Commies are feeding you to hide the fact that there cannot be industries because unions of their own party would not allow industries to function.
there were record 223 hartals in 2006.
Now for some hard facts
1.Kerala government is highly indebted
Kerala lives on borrowed money, debt trebles in 10 yrs - Economic Times
2.Kerala is dependent on remittances
Remittances make up for 21% of your GDP
Kerala - Wikipedia, the free encyclopedia
3.Probably you are not getting it that economy is Bitchhe.The Defects of a model would not go away if whether you refer to it as Socialist welfare model or kerala model.People are not against you because they hate malyalis but because the goddamn model is faulty.
